Ryde Group Ltd. ( RYDE ) shares are trading higher on Wednesday after the Singapore-based tech mobility firm announced a strategic equity stake in an emerging electric vehicle rental startup.

Ryde confirmed it has acquired 40% ownership in Atoll Discovery Pte Ltd, a local EV rental operator with a growing fleet of fully electric vehicles, signaling a significant expansion in Ryde’s green transportation ambitions.

The move aligns with Ryde’s broader vision to support Singapore’s transition toward sustainable transportation.

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The city-state is actively pursuing low-emission mobility targets, including deploying 60,000 EV charging points and eliminating internal combustion engine vehicles by 2040.

Atoll, established in 2017, currently operates nearly 100 electric BYD vehicles and collaborates with key partners like Singapore Electric Vehicles Pte.

The strategic investment allows Ryde to deepen its integration into the EV rental market without taking on the risks of full ownership, while also setting the stage for long-term expansion opportunities in Southeast Asia’s green mobility space.

This partnership supports Ryde’s RydeGreen initiative, a sustainability program launched in late 2024 aiming to roll out 1,200 EVs by 2027.

The program offers financial support, charging infrastructure, and incentives for drivers.

Atoll’s synergy with SEV complements this ecosystem, providing a ready platform to accelerate EV adoption across Ryde’s service channels.

Ryde CEO Terence Zou called the investment “a prudent move with a clear upside” regarding revenue potential and market positioning.

By expanding its EV footprint through this minority stake, Ryde aims to unlock future collaborations and operational scalability, reinforcing its lead in Singapore’s evolving mobility landscape.

Price Action: RYDE shares are trading higher by 118.8% to $0.3872 at last check Wednesday.

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